When there has been a change in accounting principles, but the effect of the change on the comparability of the financial statements is not material, the auditor should:

Question

Quizplus · Accepted Answer

Choice "C" is correct. If an accounting change has no material effect on the comparability of the financial statements, the auditor does not need to recognize the change in the current year's audit report. Choice "A" is incorrect. The change would only be referred to in an explanatory paragraph if the effect were material. Choice "B" is incorrect. The auditor does not explicitly concur with the change in the report. Choice "D" is incorrect. Even if the change had a material effect, the opinion paragraph would not be affected. The explanatory paragraph would follow the opinion paragraph.

When There Has Been a Change in Accounting Principles, but the Effect